How to attract investors from the Middle East. Three pieces of advice from Nicholas Tymoshchuk
A thousand and one nights is roughly how long it takes to close a deal with investors from the Middle East, Nicholas Tymoshchuk, CEO of UFuture holding company, told in an op-ed for Forbes.
In early 2021, UDP Renewables, of which UFuture is a strategic investor, entered into an agreement with the Qatari energy company Nebras Power, and the UNIT.City innovation park signed a memorandum of cooperation with the largest investment fund in the UAE Mubadala.
The Middle East is a strategically important region for Ukraine and Ukrainian business. There are many opportunities for us there.
The main economies of the Middle East – Saudi Arabia, Bahrain, Kuwait, Qatar, Oman and the United Arab Emirates – have been developing for more than 100 years primarily due to the export of oil and gas. Realizing that natural resources are not endless, they are investing huge amounts of money in other sectors of the economy, and even more in acquiring assets around the world.
Nicholas Tymoshchuk gave three pieces of advice on what is needed to close a deal with Middle Eastern partners:
- realize that these are monarchies, therefore, a serious improvement of commercial cooperation is always preceded here by the strengthening of relations at the political level;
- keep your word and do not violate the obligations (the Middle Eastern elite embraces the concept of honour in the deepest way; their trust and respect is difficult and long to earn);
- Islam in the Middle East is not just a religion, but a concept of the world, law and a way of life, so no one will go out of their way or sacrifice their personal life for the sake of your business – you need to stick on understanding and patience for years.
The countries of the Middle East are long-term investors. They think carefully before making a final decision. The Ukrainian “let’s make a deal quickly, and then we’ll see” will not work here.
Read more about the specifics of cooperation with investors from the Middle East via the link.